Fuel price hike is on cards

"It's simply not sustainable to enter into an era of high oil prices without charging economic price," says Montek.

The Planning Commission on Saturday favoured a hike in fuel prices to keep pace with the rising international oil prices.

"It's simply not sustainable to enter into an era of high oil prices without charging economic price," Planning Commission Deputy Chairman Montek Singh Ahluwalia saidon the sidelines of the conference of secretaries.

"When we do that (price hike), we will have to identify the customers who need to be protected. The Commission is sure of a few oil products' sensitive nature and price hike there has to be reasonable.

"Subsidies, too, have to be reasonable related to other forms of subsidies... It is a complex balance," he said, while seeking tax cuts for the oil companies to reduce the revenue losses, which they are suffering.

Currently, discussions are being held between the Finance Ministry, the Petroleum Ministry and the Prime Minister himself to find a solution.